Democratic Lt. Gov. John Garamendi on Friday asked state leaders to block Gov. Arnold Schwarzenegger's proposed $4.5 billion in spending cuts and advocated for additional taxes, including raising the state's vehicle license fee.
Schwarzenegger said Thursday the state is facing an $11.2 billion shortfall in the current fiscal year and an additional $13 billion through June 2010 without emergency action. The Republican governor proposed $4.5 billion in cuts to education and social services, in addition to $4.7 billion in tax increases, most notably a 1.5-cent hike in the state sales tax.
Garamendi, who is running for governor in 2010, praised Schwarzenegger for proposing a broad package of new tax increases, noting how it marked a dramatic shift for a GOP governor once opposed to new taxes. But Garamendi said further cuts would damage schools, public employees and services for the elderly and disabled.
He was joined by leaders of nearly a dozen education, labor and health groups, as well as about 30 college students outside the Capitol.
"The governor calls for another $4.5 billion of cuts, and my answer is no," Garamendi said. "Enough already. We've already devastated the essential services that we need."
Republicans have said tax increases would damage the already vulnerable economy by discouraging spending. Assembly Republican Leader Mike Villines said Friday that it would be "crazy" to think about installing more taxes at this time.
But Garamendi argued Friday that new taxes would be "recycled back into the California economy" through state government spending.
Rather than impose spending cuts, Garamendi argued for more taxes than Schwarzenegger proposed. He said the state should increase the vehicle license fee, a property tax on vehicles that Schwarzenegger reduced upon taking office in 2003.
"It is a progressive, an environmentally wise tax," Garamendi said. "...What we need to do is raise some $10 billion in revenue to keep the California economy going to educate our students and to provide the services that California relies upon."
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